How to be a For Sale By Owner (FSBO)

If you think selling your house is as easy as tacking a FOR SALE sign on your home, think again.

Instructions

Difficulty: Moderately Challenging

Things You’ll Need:

• For Sale Signs
• Open House Signs

1. Come up with a suitable price. Visit other like-kind properties. Ask three real estate agents what they think the price should be. Consider that they may be trying to get the listing, and that their prices may be inflated because of this. Remember, even in a weak market a property will sell if it is priced correctly. DO NOT OVERPRICE IT OR YOU WILL BE WASTING YOUR TIME!
2. Purchase and Post: "For Sale" and/or "For Sale By Owner" signs at the local hardware store (Home Depot, Lowes, etc). Purchase "Open House" signs as well. Write your telephone number on the signs in black magic marker.
3. Advertise: Create an HTML ad for your home and post weekly in Craigslist.com. Advertise in your local paper's Real Estate section. Send emails out to friends regarding the sale of your home.
4. Open House: Have weekend open houses. Try to have your open house at the same time as others on your street that are listed with brokers. The traffic generated by the brokers' advertising will move onto your home if directed to it with signs, balloons, etc..
5. Get On MLS (multiple listing service): More than 80% of buyers start their search online. MLS is the number source of these searches. Find a real estate company that has a FSBO package that offers access to MLS. These companies charge a flat fee instead of a percent of the sales price. (Note: You will be required to pay a co-broke commission in most cases)
6. Have a Seller's Disclosure Form. Provide buyers with a sheet that discloses any defects in your home. While this protects you later in the deal, it also ensure you that potential buyers know about the defects before they offer, and as a result, will be hard pressed to demand money off after an inspection (when, presumably, the inspector points out the items that you've already disclosed)
7. Be Patient. Remember that most people who visit your home are either not serious buyers, or are serious buyers that are looking for something else. Do not get overly excited each time a person comes through your door!

Tips & Warnings

• Offer a competitive "co-broke" commission to agents with buyers. Agents may have clients in their pocket ready, willing, and able to buy your property. You will be saving on commission even if you have to pay a buyer's agent because you will act as your own seller's agent.
• Since you do not have an agent representing it is wise to have a lawyer assist you in the sale of your property. It is well worth the money to make sure the deal goes smoothly.
• You WILL be bombarded with brokers and agents trying to get your listing. Instead of being defensive or aggressive with these agents, listen to what they are saying and tell them that you are offering a co-broke commission if they have a buyer (if this is what you want to do). Remember, you get more bees with honey.